M/S SAVORIT LTD vs M/S FIDALITY FINANCE LTD — C.A. No. 4992/2014

Case Summary: Savorit Ltd v. Fidelity Finance Ltd (CA 4992/2014) The Supreme Court allowed appellants' appeal against the Madras High Court's December 2009 judgment, which had affirmed recovery proceedings against the guarantor. The appellants (principal borrower and guarantor) had settled a Rs.34.21 lakh lease finance debt for Rs.9 lakh in November 2001; the finance company certified no amount was due and returned guarantee documents. The Court held that once the agreed settlement amount was paid, the official liquidator could not recover further sums from the guarantor, finding the High Court failed to recognize this fact. However, the order preserved the liquidator's right to approach a competent court if alleging fraud in the settlement. This case analysis is maintained by casestatus.in based on publicly available court records.